Follow up IRA after tax to Roth
For those plans that allow the rolling out and conversion to a Roth IRA from a 401k after tax contribution (assume some growth), does having other TIRA’s have any impact on the tax calculation for the 401k ‘s after tax amount?
Permalink Submitted by Alan Spross on Tue, 2012-04-24 18:59
No, the other IRA do not have an affect because the after tax 401k funds are being rolled directly into a Roth IRA without first being rolled to a TIRA. The direct Roth rollover is reported on line 16 of Form 1040. Form 8606 does NOT apply and line 15 of Form 1040 is not applicable to these rollovers.